Marketing for Hospitality and Tourism

Kotler, Bowen and Makens

Service Characteristics of Hospitality and Tourism

Marketing
Chapter 2

Learning Objectives
1. Describe a service culture.
2. Identify four service characteristics that affect the
marketing of a hospitality or travel product.
3. Explain seven marketing strategies for service
businesses

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Characteristics of Service Marketing

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Characteristics
of Services
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Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Steps to Reduce Variability

Invest in good hiring
& training
procedures
Standardize
The serviceperformance
process

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Monitor
Customer
Satisfaction

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

The Service Profit Chain

Internal
Internal
service
service
quality
quality

Satisfied
Satisfied and
and
loyal
loyal
customers
customers

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Satisfied
Satisfied and
and
productive
productive
service
service
employees
employees

Greater
Greater
service
service value
value

Healthy
Healthy
service
service
profits
profits and
and
growth
growth

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Types of Marketing

Internal
Marketing

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Service
Marketing

Interactive
Marketing

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Marketing Strategies

Service
Differentiation

Service
Quality

Employees
As Part Of
The Product

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Perceived
Risk

Service
Productivity

Customer
Complaints

Capacity
and
Demand

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Recommendations for Improving

Service Quality
1. Listening

6. Surprising customers

2. Reliability

7. Fair play

3. Basic service

8. Teamwork

4. Service design

9. Employee research

5. Recovery

10. Servant leadership

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Capacity Management
Involve the Customer in the Service
Delivery System
Cross-Train Employees
Use Part-Time Employees
Rent or Share Extra Facilities and
Equipment
Schedule Downtime During Periods of Low
Demand
Change the Service Delivery System

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Demand Management
Use Price to Create or Reduce Demand
Use Reservations
Overbook
Revenue Management
Use Queuing
Shift Demand
Create Promotional Events
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Tips for Managing Waiting Lines

1. Unoccupied time feels longer than occupied
time
2. Unfair waits are longer than equitable waits
3. Uncertain Waits Are Longer than Known, Finite
Waits

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms
Interactive marketing Marketing

Physical evidence Tangible clues

by a service firm that recognizes

perceived service quality depends
heavily on the quality of the buyer
seller interaction.

such as promotional material,

employees of the firm, and the physical
environment of the firm. Physical
evidence is used by a service firm to
make its product more tangible to
customers.

Internal marketing Marketing by a

service firm to train effectively and
motivate its customer-contact
employees and all the supporting
service people to work as a team to
provide customer satisfaction.
Organization image The way a
person or group views an organization.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Revenue management A pricing

method using price as a means of
matching demand with capacity.
Service culture definition to look like
this. Definition to look like this.

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms (cont.)

Service inseparability A major
characteristic of services; they are
produced and consumed at the
same time and cannot be
separated from their providers,
whether the providers are people
or machines.
Service intangibility A major
characteristic of services; they cannot
be seen, tasted, felt, heard, or smelled
before they are bought.

Service-profit chain A model that

shows the relationships between
employee satisfaction, customer
satisfaction, customer retention, value
creation, and profitability.
Service variability A major
characteristic of services; their quality
may vary greatly, depending on who
provides them and when, where, and
how they are provided.

Service perishability A major

characteristic of services; they cannot
be stored for later use.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved